France Rejects Proposed Tax on Sugary Processed Foods

Lawmakers vote against levy on biscuits, cakes, chocolates and breakfast cereals amid concerns over food inflation and pressure on consumers

France’s plan to introduce a special tax on sugary processed foods has suffered a setback after lawmakers in the National Assembly voted to remove the proposed measure from the country’s 2027 Social Security Financing Bill. The decision follows opposition from legislators and food industry representatives, who warned that the additional levy could increase grocery bills and put further pressure on manufacturers.

The proposal, introduced by Health Minister Stéphanie Rist earlier in October, sought to impose a progressive tax on six categories of pre-packaged foods: biscuits, cakes, industrial pastries, confectionery, chocolate bars and breakfast cereals.

Lawmakers voted 86 to 58 in favour of cross-party amendments removing Article 8, which contained the proposed tax provisions.

Under the proposed framework, the levy would have applied to products containing at least 10 grams of sugar per 100 grams and at least one food additive. The tax rate was capped at €22 ($24.6) per 100 kg of product. Artisanal products and those carrying protected-origin status were to be exempt.

Defending the proposal in parliament, Rist said the objective was not to penalise consumers but to encourage food manufacturers to reformulate products and reduce sugar content. She argued that voluntary discussions with the food processing industry had failed to deliver firm commitments, despite 40 rounds of consultations.

Rist also pointed to the UK’s experience with its sugar levy, citing a 46% reduction in sugar content in soft drinks between 2015 and 2020 following the introduction of the measure.

However, opponents questioned whether taxing processed foods would deliver meaningful improvements in eating habits. They argued that manufacturers could pass the additional costs on to consumers, disproportionately affecting lower-income households.

Opposition lawmaker Justine Gruet said the measure risked reducing household purchasing power without necessarily changing consumption patterns. She advocated greater emphasis on preventive healthcare, nutrition education and awareness rather than introducing additional taxes.

France’s food industry association ANIA also strongly opposed the proposal, warning that the levy would affect consumer affordability and place additional pressure on suppliers already facing difficult operating conditions.

The country’s Economic, Social and Environmental Council had supported the broader objective of improving food quality, but recommended a different approach. It suggested establishing mandatory nutritional targets with food suppliers first and considering taxation only for products that failed to meet agreed targets within a specified period.

The rejection also has financial implications for the government, as the proposed levy was expected to generate approximately €300 million annually for France’s agricultural health insurance branch.

The wider 2027 financing bill is scheduled for a formal National Assembly vote on November 5, followed by consideration in the Senate on November 16. The government could still attempt to introduce a revised proposal before the December 15 budget deadline.

The parliamentary decision highlights the continuing debate in Europe over how governments should address sugar consumption and public health without increasing food costs for consumers or placing additional burdens on the food processing industry.